What makes Gujarat vibrant?

It was the Tata Nano that first put the spotlight on Gujarat four years ago, when the car project was relocated here after a troubled stint in West Bengal. Since then, other automakers have followed Tata Motors to the State.

investments

Now, Nestle is gearing up to make Gujarat its home next year. The Indian arm will set up a (Maggi) noodles making plant with an investment of Rs 500 crore.

This marks a major step by the State in attracting investments in the food processing industry whose market size is expected to increase from $330 billion to $900 billion by 2020.

According to observers, this is only the tip of the iceberg from Gujarat's point of view with the best yet to come. In the process, it could end up becoming one of the country's most vibrant manufacturing centres. For years, it has had topnotch residents such as Reliance Industries and Essar in the hydrocarbons space. The stage is now set for the next big bang.

Creating history

What makes Gujarat tick? Why do industry leaders believe that the Chief Minister, Mr Narendra Modi, is a strong candidate for the future Prime Minister of India? Is Gujarat's good showing a result of his contribution alone or was the State up and about even before he came on the scene in October 2001?

Not the easiest of questions to answer but a quick trip down memory lane may throw up some clues. In 1971, a member of the visiting Maharashtra delegation, impressed with the Amul revolution, asked his counterparts in Gujarat how this State, carved out of Bombay State in 1961, had managed to develop so fast. “Well, you have history, we believe in creating one!” replied the counterpart.

never-say-die spirit

This pretty much epitomises the Gujarat spirit of moving on with the times. On January 26, 2011, some of its residents would have recalled that the State was observing the anniversary of the earthquake that claimed nearly 13,000 lives a decade ago. It was a monumental tragedy but what was remarkable was the rebuilding process even when the wounds had not completely healed.

Once again, it was a tribute to the never-say-die spirit of the Gujarati which helped overcome this difficult obstacle and, in the process, set a benchmark for the rest of the country.

Bigwigs

The fact that this is a business-savvy State is not news. Gujaratis account for nearly 40 per cent of all investors in India and are the centre of gravity of Bombay Stock Exchange. They know how to leverage their achievements and multiply businesses. The Ambanis, Adanis, Zydus Cadila and a host of other business houses are testimony to their zeal.

What also goes in Gujarat's favour is its infrastructure which has always been one step ahead of other States. This explains why it has attracted industry over the years with the momentum increasing now. The agriculture sector, likewise, has constantly been buoyant and the results are there for all to see.

CM Harnessing new opportunities

What Mr Modi did, after consolidating his hold and ending the political instability that was characteristic of Gujarat between the 1970s and 1990s, was to accelerate the economic development process.

He also harnessed the new opportunities brought in by the ongoing economic reforms, liberalisation and globalisation of the Indian economy.

Vibrant Gujarat summit

Mr Modi masterminded events such the biennial Vibrant Gujarat Global Investors' Summit since 2003. Thousands of crores of rupees have since flowed into the State.

Kutch district alone saw investments of nearly Rs 30,000 crore.

As the sole decision-maker, Mr Modi also ushered in the single-window policy, cut through the red-tape and simplified procedures while keeping corruption in check.

Best infrastructure

The results of these efforts have been stupendous.

Gujarat now has some of the best infrastructure in the country. It is power surplus and sells power to other States.

It is free of labour disputes and issues relating to land acquisition.

The recurring droughts of the recent past are now history thanks to the Narmada waters and the effective use of drip and sprinkler irrigation schemes.

Nearly two lakh dams are in place to prevent wastage of rainwater.

In the last decade, Gujarat has seen double digit growth in agriculture and horticulture, acknowledged by the Washington-based International Institute of Food Policy Research in 2007-08.

infrastructure developments

Among the major infrastructure developments are Ahmedabad's Bus Rapid Transit System (BRTS) and the Metro planned between Ahmedabad and Gandhinagar.

The six-lane road between Ahmedabad and Mumbai is nearing completion.

The State is marching ahead with the proposed Delhi-Mumbai Industrial Corridor (DMIC), with Japanese investments of $90 billion.

Nearly 40 per cent of this corridor passes through Gujarat.

India's existing LNG import terminals are also housed in the State.

Car manufacturing plants are rapidly dotting the landscape with the likes of Ford, Peugeot, Tata Motors and Maruti-Suzuki set for some big plans.

Gujarat is now the largest State to use natural gas through a 2,200-km long pipeline network.

It is in the process of setting up India's largest privately operated port at Mundra, developed by the Adanis.